State RegulationsGA specificDifficulty 2/5
A Georgia life insurance advertisement displays an illustration of future policy values. Under Reg. 120-2-11-.10, which of the following practices is prohibited?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Reg. 120-2-11-.10, a life advertisement may not imply that the Insurance Department or any other regulator has approved an illustration or the policy itself. The regulation also bars implying benefits not contained in the policy, suggesting stockholder-type ownership or profits, and using non-compliant dividend projections. The Department enforces the rules but never 'blesses' a sales illustration.
Why the other options are wrong
- A) Non-guaranteed values may be shown if presented compliantly; the ban is on misleading presentation, not on showing values at all.
- C) Explaining how dividends are calculated is permissible; the restriction targets non-compliant dividend projections.
- D) Reg. 120-2-11-.10 contains no provision prohibiting comparisons with competitors' policies.
Memory hook
The Department never blesses an illustration.